Asked by Andrew Allen on Jul 13, 2024
Verified
For companies whose transactions were all in dollars,cash is carried on the balance sheet at its current market value instead of its historical cost.
Current Market Value
refers to the amount at which an asset or security could be bought or sold in a current transaction between willing parties.
Historical Cost
The original monetary value of an asset or liability as recorded at the time of acquisition, not adjusted for inflation or market changes.
- Understand the treatment of cash and foreign currency transactions in financial reporting.
Verified Answer
SC
stevelle charlesJul 18, 2024
Final Answer :
False
Explanation :
Cash is always reported at its nominal value, not its current market value or historical cost, because cash does not have a historical cost different from its face value.
Learning Objectives
- Understand the treatment of cash and foreign currency transactions in financial reporting.